What Happened?
Shares of website building platform Wix (NASDAQ: WIX) fell 9.4% in the afternoon session after Raymond James downgraded the stock to Outperform from Strong Buy and lowered its price target to $70 from $75.
The firm cited the stock's 32% gain over the past month as the primary reason for the decision, noting its valuation framework no longer supported a Strong Buy rating following the rally. Analyst Josh Beck mentioned that while Wix is well-positioned in the AI product cycle, the recent share appreciation limits near-term upside until there is greater visibility on sustainable growth.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Wix? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Wix’s shares are extremely volatile and have had 37 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 9 days ago when the stock dropped 2.7% on the news that Morgan Stanley downgraded the stock's rating from "Overweight" to "Equal-weight" and lowered its price target from $112 to $60. The downgrade was driven by concerns about the health of Wix's core website-building business. The analyst noted that while new products like Base44 and Wix Harmony showed early promise, they did not improve the company's overall growth profile. Specifically, consolidated bookings and revenue growth expectations for fiscal year 2026 were reduced, partly due to an organizational realignment and a slowdown among partners. With new initiatives ramping up quickly but total revenue failing to accelerate, the analyst concluded that the core business might be absorbing more pressure than previously expected. This disconnect made it harder for the firm to justify its prior positive outlook on Wix's long-term growth and free cash flow generation.
Wix is down 44.5% since the beginning of the year, and at $56.09 per share, it is trading 69.6% below its 52-week high of $184.24 from September 2025. Investors who bought $1,000 worth of Wix’s shares 5 years ago would now be looking at only $187.81.
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